Investor presentation QTRFY18Q2corporate.spicejet.com/Content/pdf/InvestorPresentation-Q2FY18.pdf · SpiceJet also confirmed its latest order for up to 50 Bombardier Q400 planes that

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Disclaimer

Information contained in our presentation is intended solely for your personal reference and is strictly confidential.

Such information is subject to change without prior notice, its accuracy is not guaranteed and it may not contain all

material information concerning the Company. Neither we nor our advisors make any representation regarding, and

assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any

information contained herein.

In addition, certain statements contains our future growth prospects are forward-looking statements, which

involve a number of risks and uncertainties that could cause actual results to differ materially from those in such

forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to,

risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to

manage growth, intense competition in aviation sector including those factors which may affect our cost advantage,

wage fluctuations, our ability to attract and retain highly skilled professionals, time and cost overruns on various

parameters, our ability to manage international operations, reduced demand for air travel, liability for damages,

withdrawal or expiration of governmental fiscal incentives, political instability, legal restrictions on raising capital or

general economic conditions affecting our industry.

The words "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to us, are

intended to identify certain of such forward-looking statements. The Company may, from time to time, make

additional written and oral forward-looking statements, including statements contained in our reports to

shareholders. The Company does not undertake to update any forward-looking statements that may be made from

time to time by or on behalf of the Company unless it is required by law.

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Operation snapshot

50,440 ~ Pax carried per day

35 Boeing 737 NG aircraft

20 Bombardier Q400 aircraft

380 ~ Flights per day

45 Domestic destinations

7 International destinations

As on 31st Oct’17

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QUARTER HIGHLIGHTS

Q2 FY18

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Management Comments

SpiceJet registers 11th consecutive profitable quarter

Reports highest-ever Q2 profit in its history

� Highest-ever Q2 profit

� Profits grow by 80%, Revenue by 30%

� Registers record Load Factor of over 90% for 30 successive months

� Domestic load factors in excess of 94% in Q2

� Launched fourth daily flight under UDAN on the Jaisalmer-Jaipur sector

Gurugram, November 13, 2017: SpiceJet reported a profit of INR 105.3 crore for the three months ended September 30th, 2017 as against

INR 58.9 crore in the same quarter last year, making it the 11th successive profitable quarter for the airline. In the seasonal weak quarter,

profits grew by 80% against a capacity growth of 22% during this period as against the same quarter last year. This is SpiceJet’s highest Q2

profit in its history of operations.

SpiceJet reported an operating revenue of INR 1814.3 crore in the quarter. On an EBITDA basis, SpiceJet reported a profit of INR 180

crore. On an EBITDAR basis, the Company reported a profit of INR 421.6 crore.

SpiceJet yet again excelled on operational parameters to report the highest passenger load factor amongst all airlines in the country all

through the quarter. The company witnessed a 7% increase in its passenger yields (Revenue per Available Seat Kilometer) while its

average load factor across the network was 93.1%. SpiceJet has recorded more than 90% load factor for 30 successive months, a feat

unparalleled globally. Significantly the quarter also marked the fifth consecutive month when the airline’s domestic load factors have

been in excess of 94%.

Mr. Ajay Singh – CMD, SpiceJet said, “This has been yet another great quarter for us and I am very pleased with the exceptional

performance of my team. Every quarter SpiceJet has a story which further underscores our extraordinary turnaround.”

``We launched new flights on maiden routes and further emphasised our commitment for UDAN as we introduced our fourth daily flight

under the scheme. Even with eleven successive profitable quarters, path-breaking initiatives, record aircraft orders and exploring new

growth avenues through UDAN, I can say that we have just begun.”

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Management Comments

The quarter also saw SpiceJet launch its 50th destination – Dibrugarh – further strengthening SpiceJet’s focus on North-East India as the

airline now operates 26 daily flights in and out of North East, eight flights within the region besides launching a slew of flights to connect

Rajasthan like never before. SpiceJet became the first airline to introduce direct flights on multiple routes like Guwahati-Dibrugarh,

Jaisalmer-Delhi and Jaipur-Varanasi, and Chennai-Belagavi, besides launching its 4th daily flight under UDAN on the Jaisalmer-Jaipur

route.

SpiceJet also confirmed its latest order for up to 50 Bombardier Q400 planes that was announced in the Paris Airshow, making it the

largest single order ever for the Q400 turboprop aircraft program. Upon delivery, the airline may become the first in the world to operate

a 90-seat turboprop, after certification by regulatory authorities.

About SpiceJet Ltd

SpiceJet is India’s favourite airline that has made flying affordable for more Indians than ever before. SpiceJet operates 384 average daily

flights to 52 destinations, including 45 domestic and 7 international ones. The airline connects its network with a fleet of 35 Boeing

737NG and 20 Bombardier Q-400s. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.

SpiceJet’s standing as the country’s favourite airline has been further reinforced by the multiple awards and recognitions received by the

airline which includes, The CAPA Chairman’s Order of Merit for fastest turnaround in FY 2016, 'Asia's Greatest Brands - 2016', ‘Global

Asian of the Year Award’ & 'Asia's Greatest CFO 2016' at the AsiaOne Awards held in Singapore, ‘World Travel Leaders Award’ at WTM

London, ‘Best Check- in Initiative’ award by Future Travel Experience global awards in Las Vegas, ‘Best Domestic Airline’ award at the

10th ASSOCHAM International Conference & Awards (Civil Aviation & Tourism), ‘Best Domestic Airline’ at the 4th South India Travel

Awards held at Kochi.

For more information on the release, please contact:

Mr. Tushar Srivastava Ms. Sudipta Das

+91 98108 14874 +919650602489

Head, Corporate Communications Senior Manager

[email protected] [email protected]

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Results

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Results Contd…

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Results Contd…

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Results Contd…2. On July 18, 2016 and October 5, 2016 respectively, SpiceJet Merchandise Private Limited ('SMPL') and SpiceJet Technic Private Limited ('STPL')

were incorporated as wholly owned subsidiaries of the Company. Both SMPL and STPL each have a paid-up share capital of Rs. 100,000 (10,000

equity shares of Rs.10 each) and are principally engaged in the business of trading of goods and provision of technological services relating to

the aviation, aerospace and defence industry, respectively. As permitted by the SEBI (Listing obligations and disclosure requirements)

Regulations, 2015 (‘SEBI LODR’) the Company has opted to additionally submit quarterly and year-to-date consolidated results for the current

year. The comparative information in respect of the consolidated financial results for the quarter and half year ended September 2016, that

have been presented as a result of such option, have been prepared by the management and have not been subjected to limited review. (Also,

refer note 10 below).

3. The standalone and consolidated financial results for the quarter and half year ended September 30, 2017 have been reviewed by the Audit

Committee and approved by the Board of Directors at their meeting held on November 13, 2017. The consolidated financial results includes the

results of the Company and its subsidiaries SMPL and STPL (together referred to as 'the group').

4. Based on internal reporting provided to the chief operating decision maker, the standalone financial results relate to “Air transport services”

as the only segment of the Company. Consolidated segment information for the group is as follows:Year ended

ParticularsSeptember

30, 2017

September

30, 2016

June 30,

2017

September

30, 2017

September

30, 2016

March 31,

2017

Segment Revenue

a. Air transport services 18,143.0 14,004.0 18,695.3 36,838.3 29,231.4 61,912.7

b. Others 9.9 - 9.3 19.2 - 1.0

Total 18,152.9 14,004.0 18,704.6 36,857.5 29,231.4 61,913.7

Segment Results

a. Air transport services 1,049.2 588.9 1,747.4 2,796.6 2,079.1 4,300.8

b. Others (3.9) (2.8) (20.7) (24.6) (2.7) (28.5)

Total 1,045.3 586.1 1,726.7 2,772.0 2,076.4 4,272.3

Segment Assets


b. Others 234.5 25.6 206.8 234.5 25.6 182.5

Total 37,061.9 29,518.0 31,849.5 37,061.9 29,518.0 29,880.1

Segment Liabilities


b. Others 13.4 0.4 3.1 13.4 0.4 0.6

Total 40,457.1 37,854.9 36,265.4 40,457.1 37,854.9 36,006.1

Half-year endedQuarter ended

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Results Contd…Segment revenue and expenses:

Segment revenue and expenses represent relevant amounts that are either directly attributable to individual segment or are attributable to

individual segment on a reasonable basis.

Segment assets and liabilities:

Segment assets and liabilities include all relevant amounts pertaining to a segment, which are directly attributable to individual segments or are

attributable to individual segments on a reasonable basis.

5. The Company had in earlier financial years, received amounts aggregating Rs 5,790.9 Million from Mr. Kalanithi Maran and M/S KAL Airways

Private Limited (“erstwhile promoters”) as advance money towards proposed allotment of certain securities (189,091,378 share warrants and

3,750,000 non-convertible cumulative redeemable preference shares, issuable based on approvals obtained), to be adjusted at the time those

securities were to be issued. Pursuant to the legal proceedings in this regard before the Hon’ble High Court of Delhi ("Court") between the

erstwhile promoters, the present promoter and the Company, the Court, in its order dated July 29, 2016, without expressing anything on the

merits of the dispute, ordered the Company to deposit the amount of Rs. 5,790 Million as security with the Court, in 5 equal monthly

instalments, and directed the parties to take necessary steps for the purpose of constitution of an Arbitral Tribunal.

During the previous quarter, the Company’s appeal against this order was dismissed by Hon'ble Division Bench of the Court (”Division Bench”).

However the Division Bench modified the order of Hon’ble Single Judge of the Court by ordering the Company to secure an amount of Rs. 3,290

Million through a bank guarantee in favour of the Registrar General of the Delhi High Court (“Registrar”) and to deposit the balance amount of

Rs. 2,500 Million with the Registrar. The Company has accordingly secured Rs. 3,290 million through bank guarantee and has also deposited the

amount of Rs. 2,500 million with the Registrar, within the permitted timelines.

The parties to the aforementioned litigation have concurrently initiated arbitration proceedings which are ongoing before a 3 member arbitral

tribunal. The erstwhile promoters have made various claims against the Company and Mr. Ajay Singh (”current promoter”) citing various

purported breaches / non-compliances with the terms of the Share Sale & Purchase Agreement (”SSPA”) dated January 29, 2015. The Company

and the current promoter have disputed all such claims citing various grounds including non-compliances with the terms of the SSPA by the

erstwhile promoters themselves. The arbitration is currently in progress, and the final outcome of the matter is currently not ascertainable.

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Results Contd…In view of the uncertainties involved as explained above, management believes that the manner, timing and other related aspects of adjustment

of these amounts, are currently not determinable. The effects of this matter may attract the consequent provisions (including penal provisions)

of applicable provisions of law, including deeming provisions, relating to acceptance of deposits. Based on their assessment and legal advice

obtained, management is of the view that any possible consequential effects, including penal consequences and any compounding thereof, will

not have a material impact on the financial results of the Company. Accordingly, no adjustments have been made for any such consequential

penal effects in this regard.

6. As at September 30, 2017, the Company has total equity of (Rs. 3,326.8 Million), including accumulated losses of Rs. 19,250.1 Million. As of

that date, the Company's total liabilities (including Rs. 5,790.9 million referred to in Note 5 above) exceed its total assets by Rs. 3,326.8 Million,

as a result of historical market factors and the matter described in Note 5 above. These factors result in a material uncertainty that may cause

significant doubt about the Company’s ability to continue as a going concern.

As a result of various operational, commercial and financial measures implemented over the last two years, the Company has significantly

improved its liquidity position, and generated operating cash flows during that period. The Company has also earned profit after tax of Rs

4,307.2 million for the year ended March 31, 2017 and Rs 2,805.1 million for the half-year ended September 30, .2017. In view of the foregoing,

and having regard to industry outlook and also management's current assessment of the outcome of the matters stated in Note 5 above,

management is of the view that the Company will be able to maintain profitable operations and raise funds as necessary, in order to meet its

liabilities as they fall due. Accordingly, these financial results have been prepared on the basis that the Company will continue as a going

concern for the foreseeable future.

7. Having regard to the status of the matters relating to the allotment and conversion of share warrants, as stated in Note 5, it is not possible to

determine the dilutive effect, if any, of those on Diluted Earnings Per Share calculations. Accordingly, diluted earnings per share for various

periods presented in these financial results do not include the dilutive impact in respect of share warrants stated in Note 5 above.

8. Exceptional items in respect of the year ended March 31, 2017 relate to write-back of provision of Rs 385.5 Million relating to vendor claims

currently in arbitration, to the extent management believes such claims are not likely to subsist, having regard to the relevant contractual terms,

updates to arbitration proceedings, submissions thereat, and legal advice obtained by the Company.

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Results, contd..9. Other non-current assets include, amounts aggregating Rs. 178.46 million representing Integrated Goods and Services Tax (‘IGST’)

paid under protest, on overseas repairs and replacement of various aircraft equipment, which in the opinion of management and legal

advise obtained, is not subject to such levy. Accordingly, no further adjustments have been made in this regard as at September 30,

2017.

10. Previous periods' / year's figures have been regrouped / reclassified wherever considered necessary to conform to current periods'

presentation. SMPL and STPL were incorporated as wholly owned subsidiaries of the Company on July 18, 2016 and October 5, 2016

respectively. Accordingly the figures for the current period are strictly not comparable with those of the previous periods.

For SpiceJet Limited

Place: Gurgaon, Haryana Ajay SinghDate: November 13, 2017 Chairman and Managing Director

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Executive Summary

CY: Current year ; LY: Last year ; ASKM: Available seat kilometers ; RPKM: Revenue passenger kilometers ; RASK: Revenue per ASKM ; CASK: Cost

per ASKM

CY LY FAV/-ADV

Capacity(ASKM) 4,818 3,961 22%

Profit & Loss summary

Total Income from operations 18,143 14,004 30%

Other Income 242 154 57%

Expenses 17,332 13,569 -28%

EAT 1,053 589 79%

EBITDA 1,800 1,270 42%

EBITDAR 4,216 3,334 26%

Key Performance Indices

Revenue / ASKM 3.82 3.57 7%

Expenses / ASKM 3.60 3.43 -5%

EBITDAR margin 23% 24% -0.6 pps

EBITDA margin 10% 9% 0.8 pps

EAT margin 6% 4% 1.6 pps

Amt in INR million (Qtrly)

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Revenue Breakup

CY LY FAV/-ADV


Revenue details

PAX Revenue 16,034 12,281 31%

Ancillary Revenue 1,972 1,521 30%

Other Operating Revenue 137 202 -32%


Total 18,385 14,158 30%


Load Factor (RPKM/ASKM) 93% 91% 1.8 pps

Fare (Pax rev/Pax) 3,460 3,354 3%

Total RASK 3.82 3.57 7%

PAX RASK 3.33 3.10 7%

Other RASK 0.49 0.47 3%


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Expense Breakup

CY LY FAV/-ADV


Expense details

Aircraft Fuel 5,423 4,300 -26%

Aircraft Lease Rentals 2,416 2,064 -17%

Airport Charges 1,555 1,381 -13%

Aircraft Maintenance 3,054 2,093 -46%

Other Operating Costs 610 455 -34%

Employee Benefits Expense 2,137 1,558 -37%

Depreciation and Amortisation Expense 574 485 -19%

Other Expenses 1,390 1,038 -34%

Finance Costs 173 197 12%

Total Expenses 17,332 13,569 -28%


Total CASK 3.60 3.43 -5%

Fuel CASK 1.13 1.09 -4%

Other CASK 2.47 2.34 -6%


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16%21%

24%

15%

29%

-24%

24%

31%

FY15Q2 FY16Q2 FY17Q2 FY18Q2

% Passenger growth (YoY)

Industry pax SpiceJet pax

16,682 20,120

25,023

28,747

3,283 2,480 3,077 4,037


Passenger in thousands


Air India

13.4%

Jet

15.3%

JetLite

2.3%

Spicejet

13.8%

Go Air

8.5%

Indigo

38.4%

Others

8.3%

As on Sep’17

18.7%

12.3% 12.5%13.8%


% Domestic market – quarter ending

SpiceJet Market Share

Source: DGCA Statistics

Aviation Market (Domestic)

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Aviation Market (International)

29%

9%13% 14%

-4%

9%

54%

17%




4,155 4,550

5,128 5,843

242 264 406 473


Passenger in thousands


6.4% 6.2%

8.3% 8.0%


% Domestic market – quarter ending



Air India

43.5%

Jet

35.1%

Spicejet

8.0%

Indigo

13.3%

As on Sep’17

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Financial Highlights

14,780 11,207 14,158 18,385


Total Revenue

INR million

17,885 10,917 13,569 17,332


Total Expenses

INR million

204 2,693 3,334 4,216


EBITDAR

INR million

(3,104)

290 589

1,053


EAT

INR million

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Key Indicators

7%

-34%

38%

22%16%

-24%

26%30%

2%

39%

-24%-28%


% Growth (YoY) (Fav/-Adv)

Capacity Revenue Expenses

3.40 3.89 3.57 3.82

82%

91% 91%

93%


Total RASK Passenger load factor

1%

24% 24% 23%

-21%

3% 4% 6%


% total revenue

EBITDAR margin EAT margin

1.81 1.17 1.09 1.13

2.30

2.62 2.34 2.47


INR

CASK (Fuel) CASK (Others)

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HALF YEARLY

HIGHLIGHTS

YTD18

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Executive Summary

CY LY FAV/-ADV


Profit & Loss summary

Total Income from operations 36,838 29,219 26%


Expenses 34,474 27,518 -25%

EAT 2,805 2,079 35%

EBITDA 4,283 3,418 25%

EBITDAR 9,009 8,077 12%


Revenue / ASKM 3.97 3.77 5%

Expenses / ASKM 3.67 3.51 -5%

EBITDAR margin 24% 27% -3.1 pps

EBITDA margin 11% 12% -0.1 pps

EAT margin 8% 7% 0.5 pps

Amt in INR million (YTD)

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Revenue Breakup

CY LY FAV/-ADV


Revenue details

PAX Revenue 32,954 25,715 28%

Ancillary Revenue 3,641 3,156 15%

Other Operating Revenue 244 349 -30%


Total 37,279 29,598 26%


Load Factor (RPKM/ASKM) 93% 91% 1.8 pps

Fare (Pax rev/Pax) 3,692 3,479 6%

Total RASK 3.97 3.77 5%

PAX RASK 3.51 3.28 7%

Other RASK 0.46 0.50 -7%


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Expense Breakup

CY LY FAV/-ADV


Expense details

Aircraft Fuel 10,767 8,296 -30%

Aircraft Lease Rentals 4,725 4,658 -1%

Airport Charges 3,154 2,333 -35%

Aircraft Maintenance 6,059 4,065 -49%

Other Operating Costs 1,223 1,223 0%

Employee Benefits Expense 4,102 3,049 -35%

Depreciation and Amortisation Expense 1,135 933 -22%

Other Expenses 2,965 2,555 -16%

Finance Costs 343 405 15%

Total Expenses 34,474 27,518 -25%


Total CASK 3.67 3.51 -5%

Fuel CASK 1.15 1.06 -8%

Other CASK 2.53 2.45 -3%


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Aviation Market (Domestic)

12%

20% 23%

16%13%

-25%

29%25%

YTD15 YTD16 YTD17 YTD18



33.5 40.3

49.5

57.5

6.4 4.8 6.2 7.8


Passenger in millions


Air India

13.4%

Jet

15.3%

JetLite

2.3%

Spicejet

13.8%

Go Air

8.5%

Indigo

38.4%

Others

8.3%

As on Sep’17

18.7%

12.3% 12.5%13.8%


% Domestic market – year ending



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Aviation Market (International)

29%

9% 9%14%

-8%

12%

52%

14%




8.4 9.2

10.0

11.4

0.5 0.5 0.8 0.9


Passenger in millions


6.4% 6.2%

8.3% 8.0%


% Domestic market – year ending


Air India

43.5%

Jet

35.1%

Spicejet

8.0%

Indigo

13.3%

As on Sep’17


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Financial Highlights

31,856 22,545 29,598 37,279


Total Revenue

INR million

36,201 21,525 27,518 34,474


Total Expenses

INR million

2,515 5,774 8,077 9,009


EBITDAR

INR million

(4,346)

1,020

2,079 2,805


EAT

INR million

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Key Indicators

-1%

-34%

37%

20%

7%

-29%

31%26%

-3%

41%

-28% -25%


% Growth (YoY)

Capacity Revenue Expenses

3.71 3.95 3.77 3.97

81%

90% 91% 93%


Total RASK Passenger load factor

8%

26% 27%24%

-14%

5%7% 8%


% total revenue

EBITDAR margin EAT margin

1.82 1.22 1.06 1.15

2.40

2.55 2.45 2.53


INR

CASK (Fuel) CASK (Others)

Documents

Investor presentation QTRFY18Q2corporate.spicejet.com/Content/pdf/InvestorPresentation-Q2FY18.pdf · SpiceJet also confirmed its latest order for up to 50 Bombardier Q400 planes that